and greece and italy and to contribute to the continued existence of the hero because i think it's a stupid idea to start with and it's just chucking money down the drain yet pulling the plug on those states could trigger a chain reaction greece believe investors can no longer avoid quitting the euro that in turn will spark the exits of portugal even italy and spain. ireland the boss. the bug is going to stop there over the last couple of. spain over germany italy with germany started to go all europe's top banks hold billions of euro in greek and portuguese debt if those countries go bust they could lose that money we might see scenarios. people will run to the bank in order to withdraw their deposits because they believe the bank might not be able to pay them the euros facing an existential crisis admits german chancellor angela

merkel but the head of your biggest economy. find a compromise at the brussels summit that's raising tensions across the globe. at the moment the most visible the most obvious the eurozone problems but on the other side of the atlantic you have the u.s. economy recession but showing some very weak economic figures and suffering as well e.u. leaders could sign that this warrant for the single currency here at the summit if again they failed to do a deal and halt the spreading your a virus experts fear public panic will take over denying them control. see brussels and the e.u. cranks. to join in report later this hour. with the east coast struggling to keep its head above water there are still some countries that are ready to get on board some commentator. climbing on the titanic.

thinking. well from a financial times correspondent david says it's not only the euro down. i don't believe there's i though the european economies or the united states have yet. really begun to get to grips with the very grave collapse that occurred after two thousand and eight. lot of pain therefore is is facing is going forward. from and also to appoint to view the sooner we start to get to grips with that and take some of the austere measures necessary the better we will all have to recognize in the process that we are a lot poorer than we thought we were in two thousand and seven the story is that the euro as a phenomena is in quite serious danger. over the crisis a raging across the atlantic as well check out the latest edition of the kaiser report to see if people in the u.s. are going to rise up against the big banks or not. they're encouraging at least

twenty thousand people to show up on wall street occupy wall street and don't leave just like that the people in tahrir square didn't leave and told their demand that mubarak step down with the americans saying don't leave until obama forms a presidential commission to investigate whether or not there's been financial fraud. investigations into the phone hacking case that's rocking the u.k. growing up by the day with more questions being asked of key figures in political media and police circles as the scandal intensifies its impact threatens careers across the board while he's there and it reports on how the case continues to haunt not just repeated murdoch but the prime minister david cameron is wild.

i'm enjoying this so. who will survive the phone hacking scandal and keep his job cameron comes under fire for hiring. former editor of the now defunct news of the world he's accused of encouraging his staff to hack into private voice mails there's been a large amount of fingers in isn't just a kind of heads in the sand and that is lethal for a prime minister and he's now in a real fight isn't a real really bad situation he could well be looking at some serious consequences for himself at the very least those star still around him betting shops have slashed the odds on cameron being the next m.p. to quit working they offered one hundred to one at the beginning of the week but just five to one three days later in the last two weeks or so we've seen a lot of money go on camera in the last forty eight hours when the. committees have been going on behind us. and we've seen cameron over the last few weeks fall from

one hundred to one to be the next cabinet member to leave to forty one years just slightly crept up again to five to one today as a result of his statements in the house where we thought he gave quite a good performance on choose day it was murdoch's turn for a close shave attacked by a protester with a phone pai and saved only by his wife's right talk despite profuse apologies to victims of his own newspaper's unethical behavior he had no intention of stepping down himself. so what's less clear is whether david cameron remains the best person to lead britain out of this crisis of confidence he hired coos and who in turn it was later revealed was being advised by another ex news of the world hack neil wallis if that wasn't enough he was simple taney asli. working for the metropolitan police politicians and police under fire for cruising up to

and colluding with the murdoch empire and in the wings cameron arch rival edge miliband is limbering up to step into the ring of so the country can have the leadership we need why why doesn't he do more why doesn't he do more than give a half apology and provide the full apology now for hiring mr colson and bringing him into the heart of downing street. commentators say the prime minister came out on top in wednesday's round in the house of commons when he was grilled by peas over his relationship with news corp but the fight is far from a once you know. he is damaged before the race he was he was beginning to develop the teflon camera because none of the sort of damage that was in the government actually stuck to him the scandal has forced resignations all round top

executives at news corp and the u.k.'s two most senior police officers many are asking why the prime minister shouldn't be next for a knock out david cameron promised a full some apology if it turns out and he calls in light to him about his involvement with phone hacking but some say that would be enough when it's over and we are a long way from that it's far from clear who can survive the rounds still to come and remain at the top of the media the police and the government your avatar. or new york based radio hey sam seeder believes that model's days at the top of his media empire are numbered and his political ambition that's been his downfall. i would be shocked if he is still at the helm of news corp in over the next couple of months and i think we're going to see actually a reversal of this i mean murdoch was in many ways

a throwback and. professor jay rosen at n.y.u. has basically said that this was not a a new company it was a media company that has a news the vision that essentially functions as a lobbyist as a lobbying arm for that media enterprise and i think murdoch wanted that political power and i suspect that anybody who takes over from murdoch and we don't know who that will be but i'm sure there will be somebody will see this this pursuit of political power just for the sake of political power to be antithetical to running a good business with plenty more ahead including time to take it by. the taliban has grown as a result of the u.s. presence in the southern afghanistan you get accent of pain you know how the pounds of us choose from that country to preach security. just imagine this piece is

about four and a half billion years old what your. space is wrong but is it cosmic passionate pursuit of profit week spooled one line winds in the right feet that it's spreading in central russia. well turning from countries cools and trouble for the european union to others still hoping to join it so it is expecting progress on its integration bit following the arrest of suspect gordon had it that had remained and he had little to membership still in need clearing how to be extradited to the hague on today arafat reports now from the sapping capital. whilst the government is very much to the west the public opinion actually does this quite significantly now the last time i was in both grade at the end of last year i spoke to the deputy prime minister head i asked him why there's still such a government drive to this membership and he said that they really see this as a chance the serbian people to have quote a normal life well the people here in serbia only have to look at what's happening

right now in greece in spain in italy to see that quite clearly even membership is not going to be the answer to all our country's problems now add to that that they're also a very disillusioned with the government's policies and the way that they've handled this whole partnership and dealings with the e.u. they feel the serbia is being made to jump through hoops and that whilst they're filling all these demands that are put on them by the this thing gets very little in return. for years ago nothing whatsoever. got many many more hoops to jump over before you can get anywhere close to. the e.u. has always linked. membership with the full cooperation with the hague and we've already heard from president padgett that he feels that they have felt

their moral and legal obligations to the hague so it's going to be very interesting now to see with this latest arrest of had it whether or not the e.u. is going to school not just with words but with actions now because it seems that with the arrest serbia really has cooled brussels blocked. well there's plenty more to find all websites including the latest news blogs and experts and alice and his will is online right now at halting dot com my delivery with a difference in the lion's den zero now has pledged to spend five weeks with his family of big cats he will be their lungs they will be then midwife and lots of passions run high in st petersburg as dozens of glamorous contestants put on their high heels for one hundred meters brain find out what drives the girls are chasing on our website dotty dot com. the security and dave are in afghanistan the house of the guy with responsibility for the first regions being transferred from nato into the hands of local forces the whole transition process is scheduled to

last until twenty five. after that the remaining foreign troops in afghanistan will only be in support roles such as training local police violence recently spiked in the country with insurgents targeting green was being handed over to the taliban won't be so eager to fight once foreign forces have gone nuts and willing to take on the best say afghan war veteran member of do you think afghanistan. the taliban has grown as a result of continued u.s. presence in the southern afghanistan so by the u.s. leaving you're going to see the taliban basically not want to fight as much because their base to be fighting is afghans you're going to see an afghan peace process take place because afghans generally speaking don't want to silly fight with each other they just simply want to live in coexist for the most part now as the taliban

comes into the peace process comes into the afghan government the taliban will begin to reconcile itself with the population and become more congenial simply because it has to if it wants to be taken seriously by the population generally speaking that afghans are better. we're governing themselves without the united states because she forces provided security for them because as you seem we know unintentionally killed a lot of people and i think that we would be foolish to sit here and think that the u.s. is leaving we're not leaving there will be permanent u.s. involvement that made or going to vomit for a long time. where across the globe this hour the u.s. has announced it will send aid to found the hit some are certainly if the short deliveries work they did is they passed through islamist militant controlled areas the un has declared a state of famine and somebody somalia when nearly four million people in danger of starvation a devastating drought has caused the crisis said to be the worst to hit the region

in decades it's estimated the stricken country needs over one and a half billion u.s. dollars in aid. for elderly kenyans have been given a legal permission to see the british government allege atrocities committed during colonial times they claim in say they were systematically abused and special camps set up to crush them our billion against it which is really the foreign office says it should not be held responsible for the entrance of the colonial administration. atlantis is even bad for its very last landing after almost a fortnight in orbit me touch down brings to an end the thirty year american space shuttle program atlantis is the last shuttle to be retired or as i understand push on display at the kennedy space center anything to missions by u.s. astronauts of the international space station will rely entirely on help from russia. sometimes you have to dig deep to reach for the stars that at least is the case in central russia region where me shrive fever has spread in recent years. the

chance to catch a fallen star. they don't believe in aliens of the time machine but they do spend most of their time looking for extraterrestrial matter that will take them billions of years back in time most meteorite hunters in russia do it for profit but some still see it as their way of heat hiking through the galaxy that the initial this is the oldest matter you can hold in your hands there is a theory that meteorites are part of planets poor group one just imagine this piece is about four and a half billion years old like the euro at them this valley about three hundred kilometers east of moscow is their latest pitstop about ten thousand years ago the local fields took a happy pounding from an irish hour creating the most fertile meteorite ground in central russia in discovery in two thousand was a pure accident. if you did dog kids help with the draining off the excavators left

a local resident was passing by you know just a rather strange broken picked out of. his bomb for two years until the store program but meteorites on t.v. and sent it in for testing. the internet new years about three tons of meteoric material was discovered here at the sun with the unlikely they're out of the nation he's honest as he's the only dog in russia trying to account for rocks from other planets in many ways meteorite hunting is a lot like gold digging you have to spend weeks and while hoping for stroke a flock but in today's prices searching for these acts to terrestrial rocks can be more profitable than even the good old gold fever marchionne no lou and i meteorites we are in high as the month can cost two or even three times the weight in gold the biggest findings usually gravitate to the united states and western europe where most me to write collectors and base and about the law actually where

the facts are correct for the rocks ten percent of their value of must be paid to the. sure still some delusion to try and dodge the meteorite tax this hotel on halt was uncovered earlier this year at a moscow airport on its way illegally to the czech republic for some of their fallen stars but for others meteorites are increasingly becoming a blazing hog come on. the. next hour to discover how. cool in the hot summer sun all of that out corboy very last to take a look at how these rules have on is a pretty mess that tank and skills to test the fit is to travel holes of kilometers to mess about all of which will stay in i'd like to see that's rocking to begin in the mid to here russia today with sold out fun in the sun a much more course in all schools round up next our. business update now with

dmitri after a short break. the international fashion festival plus on the volga took place in july the event of a region of russia. russian designers presented the best of their live and collections of the fashion shows in central russia's most beautiful vulgar city. i live in total stranger and children's fashion show all to two places part of the festival the president of which was russia's well known fashion designer. clothes here with business first up on the program minority shareholders of team preparing a lawsuit claiming billions of dollars in damages over b.p.'s failed bid to partner ross now in exploration shareholders of one

a russian court ruling ordering papers surrounding the multi-billion dollar deal to be revealed this will allow them to evaluate the damages b.p. and rosneft failed to strike the deal this spring as ten-k. b.p. shareholders claim to b.p.'s russian joint venture should be the primary vehicle for exploration in the arctic. to the board members nominated by b.p. didn't make it clear there was an opportune thankful corporation which they should have done as a result didn't get to participate in this partnership might have had lawsuits. going to sticking for the u.s. to resolve its debt problems not only as a raise the american debt ceiling could mean a default on its massive obligations this very important so russia which holds one quarter of its international reserves and u.s. bonds joining me now to discuss the issue is jacob knell chief economist at morgan stanley russia jacob welcome to the studio went on to the program thank you so much what do you think about the situation for russia should it start worrying actually

i don't think so i think that the u.s. treasury secretary will allow. the u.s. to default on external implication so if the debt ceiling doesn't get raised then what will happen is the u.s. will skip some domestic payments you'll see a default perhaps you want to use that word on social security payments pension payments to americans or perhaps a shutdown of parts of the federal government but it'll stay a little stay constant on its external debt will because t. bills will see their coupons be paid i'll see their coupons being paid however if the deal that is done doesn't satisfy the credit rating agencies there is a chance of a rating downgrade and that may have an impact on the treasury bill market it may have an impact on the price of tea bills and that may have an impact on the value of russia's international reserves we don't think it will have much of an impact because the depth of the us to build market is so big it's the coors source of funding of low risk assets for so many companies that we don't expect it so

significantly with the price but there's a risk it would it seems that the s. and p. and moody's have compiled a list of requirements which are pretty pretty harsh on the u.s. and they're acting a bit like a government body like the i.m.f. like an international body like the i.m.f. or the world bank wouldn't you say that's a different and interesting shift of role of these oh yeah i think it's a good question the role of credit rating agencies and perhaps there's a good case and certainly the european union and russia have raised this issue whether there's a good case for some are other credit rating agencies or maybe some of the board to make these assessments but at the moment they are the people who do it and they're the people who have the credibility in the market even if they've made some bad calls in the past all right so if there's a downgrade for u.s. debt should russia start changing the structure of its international reserves then i would take that question in two parts i think that the central bank reserves the main thing you want to see the quiddity and the u.s.

market is the most liquid market in the world so probably you don't want to change your composition on your side. bank reserve side but fuel oil fund assets i think that russia wants to invest in order to get a decent low risk return and there's a very strong case there i think for further diversification not just into cones of other countries as has already been done but also into equities commodities and other asset classes i believe that's under consideration so russia is actually considering doing that that i think is considering moving the management of the oil fund assets to be separately separate from the management of the central bank assets because you've got different objectives sets of. what do you think is more important right now that by august second we see the debt ceiling be raised or that actually the united states start tightening the belt on the spending right you need both you need both obviously they have to raise the debt ceiling but it

wouldn't be bad it wouldn't be good for russia or for the rest of the world if the u.s. tightened fiscal policy to shortly too soon it would get to the oil price it would be bad for global growth what you need is a medium term plan for deficit reduction including actual taxes an additional entitle it's like health care and so do you think they will actually make it on time with with some kind of resolution before maybe maybe not once in one thousand nine hundred sixty they they failed to reach agreement to the federal government shut down all non-essential services so that could happen again i guess but sometimes a crisis concentrates minds and it make it people over the home to an agreement all right jacob now chief economist of morgan stanley russia thank you so much for your comments thank you. as moved to the markets we have just a couple minutes remaining crude has been pretty volatile today just an hour ago was dropping now and stop him in trees and pushed oil up the reports of a contraction in chinese manufacturing and limiting gains will resume right now

light sweet gain of thirty seven cents a barrel and brant. just six cents european markets in the black this hour now and jobless claims serve come out in the united states with a slight increase yet u.s. futures are pointing to a positive start because it seems the overall trend is a downward trend on jobless claims chancellor merkel french president sarkozy agreed on a joint approach to greece's debt crisis ahead of today's easy to summit and this is also helping markets gain buses gaining some optimism here in moscow markets are slowly coming out of the red territory that started the day. my six point two percent lower unemployment rates accelerated retail sales in june also support in the market take a look at some of the main movers on the my sex energy stocks still in the red gas from down point four percent as well bank paring those losses it's down just point two percent telecom has been a strong so for the past couple of days it's running on speculation it could be

completely sold to private investors yesterday again five and a half percent. business ulti will be back in fifteen minutes time with an update.

on. len.

it's all false now her this is e.u. leaders are in brussels for a summit in hiring out measures to tackle the greek crisis but many say with debts academics spreading and threatening big companies like nike and spain is the very future currency of say. meanwhile these troubles all just tearing aspiring state from want to join is said to be a protest to extradite its big crime fugitive to the hague got an outage was the conditions filled to move closer to becoming a member of the fall. and investigations case both intensify with even

more openness from. thank you as coming under scrutiny on public betting on who the case might bring down next ex-pres says threatens the careers of not saying i need your exact age is included with my self but also a deep mystical future prime minister david cameron. and now all got him off the man heading the russian direct investment fund just where high tech investment will come from the president's economic modernization desire to be fulfilled and if you show spotlight it's next. to. hello again the wall come to spotlight the challenge hard. today my guest in the studio is killed in the lead to hear how the world

economic forum in st petersburg president meet the middle visit launched an investment fund aimed at healing the country's economy with borrowed money innovative businesses and high tech manufacturing stand alone the main recipients of the promised karishma to fulfill them bush's go the president sent one of the iconic figures are dressed the rest of the market to spur the process but where will the money be coming from here is the head of the russian direct investment fund kid he'll meet the. recently treated russian direct investment fund will bankroll its worst projects in a couple of months half a billion dollars will go towards medicine pharmacy agriculture an important placement the deputy head of the russian central bank says much of this money will probably come from the middle east but the fund still has much work at hand to make everyone believe their investments in russia will be safe.